The yuan ended flat at 8.2765 per US dollar on Tuesday, near the stronger end of its managed trading range. The one-year non-deliverable dollar forward discount versus the yuan was at 3,900 points implying a rate of 7.888 yuan per dollar in 12 months' time. NDFs are a transaction where a forward price is agreed between a customer and a bank, but settlement on the value date is undertaken entirely in US dollars.
One-year implied yuan volatility was traded at 7.70/8.50 percent on Tuesday.
Implied volatility is a measure of how much the options market expects the price of the underlying asset to move during the life of the option.
The yuan moves in a band of 8.2760 to 8.2800 enforced by the central bank.
Turnover, a moderate $920 million on Monday, was not immediately available. The yuan firmed to 7.8426 against 100 Japanese yen from 7.8531 on Monday, and strengthened against the euro to 10.7062 from 10.7338.
China's central bank drained 20 billion yuan ($2.4 billion) from the banking system on Tuesday, a relatively gentle move to help the market digest a recent interest rate hike.
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